Job Creation Effect Research Articles

Does innovative city construction boost urban employment? Evidence from China

ABSTRACT The impact of innovation-driven policies on employment in developing countries deserves due attention. This study systematically assesses the impact of innovative city pilot (ICP) policy on urban employment in China. Theoretical analyses suggest that the total effects of innovation-driven policies on employment depend on the relative magnitude of the job-creation effects versus the job-substitution effects. We construct time-varying Differences-in-Differences (DID) models using data on 280 Chinese cities from 2003 to 2017. It is found that total employment of ICP cities was increased by about 10.22% after the policy shock. Namely, we confirm that ICP policy’s job-creation effects are larger than the job-substitution effects. These results remain robust to the exclusion of heterogeneous treatment effects, the effects of other relevant policies, selection bias issues, and other unobservable random factors. Furthermore, impact mechanisms tests reveal that the science expenditure channel and industrial structure upgrading channel partially transmitted the ICP policy’s effects on urban employment. Moreover, in the heterogeneity analysis section, we find that the employment dividend of ICP policy varies significantly across regions and industries. Finally, we came up with some policy implications on how to mitigate the regional and sectoral inequalities of ICP policy’s employment effects.

지역산업연관분석을 활용한 동남권 연구개발투자의 경제적 파급효과

Based on the regional industry association table published by the Bank of Korea (as of 2015, July 2022), this study analyzed the economic ripple effect of R&D investment in the southeastern region of Korea (Busan, Ulsan, and Gyeongnam) on each region of the country and the economic ripple effect on individual industries in the southeast region. As a result of analyzing the economic effect of R&D investment in the southeast region on each region, it was found that the effect was the highest in the southeast region, which is its own region, in all sectors such as the production inducement coefficient, the value-added inducement coefficient, and the employment inducement coefficient, followed by the high economic ripple effect on the metropolitan area. In addition, as a result of analyzing the effect of R&D investment in the southeast region on each industry in the southeast region, it was found that the production inducement effect had a large ripple effect on the manufacturing sector, and the job creation effect had a large economic ripple effect on the service industry.

The role of immigration in a deep recession

This paper studies the impact of pre-Great Recession immigrant inflows on the labour market during a recession. It develops a random search model of the labour market featuring vacancy persistence, endogenous return migration, and wage rigidity. Consistent with the Spanish data, some immigrants in the model leave the country during the recession, freeing up jobs for natives. Yet, differences in match-quality draws between immigrants and natives also impact firms’ job creation decisions. The return-migration channel positively affects natives, while job creation effects are negative in the calibrated Spanish economy. I find that immigrants mitigate the impact of the recession and enhance natives’ welfare. During the recession, the native unemployment rate would have been 2 percentage points higher in the absence of the pre-crisis immigration boom. Return migration plays a key role, with short- and medium-run impacts on the native unemployment rate 6 times larger than all other channels combined.

Comparison of the Roles of the South Korean and Japanese Electric Power Sectors in Their National Economies

The growing demand for electricity, driven by factors such as the shift to carbon neutrality and economic growth, is a challenge shared by South Korea and Japan. South Korea, a peninsula nation, and Japan, an island country, which are both heavily dependent on foreign energy sources and have manufacturing-based industrial structures, are actively working to secure stable power supplies for their economic development. This article carries out a quantitative analysis of the roles of the South Korean and Japanese electric power sectors (EPSs) in their respective economies, seeking to identify differences and generate actionable insights for decision making and policy formulation. Utilizing the input–output (IO) technique with the latest available data, the analysis includes a demand-side model, a supply-side model, and a price-side model to examine various effects of the EPSs. The key findings reveal differences in the production-inducing, value-added creation, and job-creation effects between the two countries, highlighting operational disparities in their electricity sectors. Additionally, South Korea exhibits higher wage-inducing, supply shortage, and price-side effects than Japan, because of its public enterprise-oriented high-wage structure and a substantial manufacturing sector. These quantitative results provide valuable reference material for future government decisions and policy development in the EPS and emphasize the significant role and impact of the power sector in both countries.

Some Causes of Unemployment and Their Relationship with the Creation and the Destruction of Jobs.

There are substantial societal and economic consequences of unemployment. The effects of job creation and destruction on the unemployment rate are examined in this article. It considers job loss and re-employment rates to provide the authentic unemployment rate. Costs associated with looking for work and salary stagnation are the root causes of structural and frictional unemployment. After that, the article delves into the effects of unemployment, including less GDP, tax money, human capital, and welfare expenditure. Fiscal measures such as public expenditure and tax cuts, monetary easing via reduction to interest rates and the money supply, and structural changes to improve skills and labor mobility are all part of the policy solutions that are described to lessen the impact of these factors. This article delves deeply into unemployment’s origins, implications, and policy solutions. Long-term unemployment causes a lot of problems; therefore, solving them will need policies that are well-coordinated in the fiscal, monetary, and structural areas.

Migration policy in Albania: institutional aspects

After the fall of the communist regime Albania turned from a closed country into a country of net emigration. The article examines the evolution of Albanian migration policy from 1990 to 2022. The purpose of the study is to identify the approaches to the regulation of international migration in the context of the integration of Albania into the EU. The research is based on the state and supranational sources in the field of migration: legislative and regulatory acts, strategies, action plans, international agreements. The period under consideration is divided into two almost equal parts in relation to the level of participation of Albania in the regulation of migration. The first period (until the mid-2000s) is characterized by a relatively passive stance, relying primarily on external forces which regulate migration from Albania, such as other countries of the region and the EU. With the adoption of the Strategy for Migration Management in 2005 Albania took a more active stance, focused, on the one hand, on comprehensive and multidirectional interaction with the Albanian diaspora and, on the other, on reducing emigration by creating new jobs. It is revealed that the measures taken to return the representatives of the diaspora to the country and reduce the emigration activity of the current inhabitants of Albania are not enough. The diaspora plays a significant role in the economy of Albania, however, it does not seek re-emigration. The effect of job creation was largely offset by the European migrant crisis.

Research on Employment Effect of FDI in Service Industry in Jiangsu Province

In recent years, the global foreign direct investment (FDI) has shown a “service-oriented” trend, and the labor force has gradually begun to flow to the service industry. Introducing FDI into service industry can not only absorb part of employment with its job-creation effect, but also promote the improvement of employment quality. Under the guidance of market demand and the government, the proportion of FDI in China's service sector has gradually increased, and the service sector and service trade have become a new driving force for China's economic growth. The development of service industry in Jiangsu province has always been in a leading position in China. Meanwhile, Jiangsu province is also one of the main provinces where labor force gathers. Therefore, it is of theoretical and practical significance to study the employment effect of FDI in service industry in Jiangsu Province for relieving employment pressure and promoting the efficient use of FDI. This study firstly combs the relevant literature at home and abroad, which is divided into two aspects of employment quantity and employment quality. On this basis, the paper analyzes the mechanism of service FDI's influence on employment from these two levels and constructs the theoretical basis of this study. Secondly, this study analyzes the current situation of FDI and employment in service industry in Jiangsu Province. Then, empirical analysis is made on the data of Jiangsu province from 2007 to 2020, and the conclusion is drawn that FDI in service industry in Jiangsu Province can not only promote the increase of employment quantity in service industry, but also promote the improvement of employment quality in service industry. Based on the above analysis, this study puts forward relevant suggestions on how to make more efficient use of FDI to drive employment effect in Jiangsu province.

대경권 제조창업의 특성과 활성화 정책에 대한 소고

When it comes to start-ups-related researches in the past, it seems rare to find ones analyzing characteristics of manufacturing start-ups with the focus on a certain specific region. Then, the purpose of this study is to precisely investigate characteristics and current situation of manufacturing start-ups in Daegu-Gyeongbuk region, using regional level data. To do so, descriptive statistical analysis was conducted first by using micro firm-level data provided by Statistics Korea. And using DID model, the study analyzed job creation effects of manufacturing start-ups of time lag in the region. Then, long-term job creation effects were found in both region and its effects of Daegu region were more distinctive. As a result, implications for policies promoting the growth of manufacturing start-ups in the region are as follows. First, considering long-term job creation effects of manufacturing start-ups, policies should be focused on increasing survival rate of competitive start-ups at early stage other than fostering them in quantity. Second, joint governance of Daegu-Gyeongbuk region showing geographical proximity and similar characteristics of industrial structure is required to handle issues related to promotion of manufacturing start-ups. Third, types of new industry that Daegu-Gyeongbuk region wants to strategically foster are quite different from the fields where regional start-ups are most actively formed. Therefore, industrial base for creation of new industry needs be intensified by promoting manufacturing start-ups in the region. Lastly, regional competence as post BI(business incubator) should be strengthened, fully utilizing industrial agglomeration such as industrial complex within the region.

Immigration, skill acquisition, and fiscal redistribution in a search equilibrium model

AbstractAs recent immigration flows are reshaping the host countries workforce composition, this paper aims to assess whether age composition and skill adjustment dynamics play a relevant role in the welfare impact of immigration. To this end, we build and simulate a search and matching model that allows for endogenous natives’ skill acquisition and intergenerational transfers to analyze the welfare effects of immigration on a selected group of 19 OECD countries. The obtained results are then compared with those obtained under different assumptions on age composition and skill adjustment dynamics. Our comparative statics analysis shows that stronger job creation effects take place when natives adjust their skill in response to immigration. Moreover, taking into account age composition plays a key role in assessing the fiscal impact of immigration, which turns out to be positive when we include intergenerational transfers to retirees and immigration is high-skilled. Finally, we find that our model yields more optimistic welfare effects than standard search models that abstract from skill decision and intergenerational redistribution.

Effects of Job Creation on Security Enhancement in Abuja

Effects of Job Creation on Security Enhancement in Abuja

Teknolojik Değişme ve İstihdam Arasındaki Dinamik İlişki: Genç İstihdamı ile Toplam İstihdamın Panel VAR ve Nedensellik Analizleri ile Karşılaştırılması

This study empirically examines the relationship and causality between technological change and employment by comparing youth and total employment. It covers data from 16 OECD economies from 1985 to 2018 and uses multifactor productivity (MFP) as a proxy for technological change. The findings from the general method of moments panel vector autoregression (GMM Panel-VAR) approach indicate significant and positive effects of MFP on youth and total employment, and a significant yet negative impact of youth employment on MFP. According to Panel-VAR-Granger-Causality analysis results, there is a two-way causality between MFP and youth employment and a one-way causality from MFP to total employment. Thus, this study empirically confirms the job-creation effect of technology and finds out that the technological change and employment nexus differs for youth employment compared to that for total employment.

Global agricultural value chains and employment growth

AbstractThis paper provides evidence on the job creation effects in response to the expansion of agricultural global value chains (AGVCs) in agrarian economies. By using a constructed panel data set of 140 countries for the period 19912015, we find that a greater AGVC participation is associated with an increase in agricultural employment growth. We uncover evidence that the positive job creation impact is mainly driven by the processed food sector downstream of GVCs rather than the raw commodity sector upstream of GVCs. We find substantial heterogeneity of impacts that are more pronounced in lower‐middle and high‐income countries than in low‐income countries.

Resource Discoveries, FDI Bonanzas, and Local Multipliers: Evidence from Mozambique

Abstract We show that giant and unpredictable oil and gas discoveries trigger FDI bonanzas. Across developing countries, we document a 56% increase in FDI in the two years following a giant discovery. These booms are driven by new projects in sectors such as manufacturing, retail, services, and construction. To assess the job creation effects of one such FDI bonanza in Mozambique, we combine concurrent waves of household surveys and firm censuses and estimate the local job multiplier of FDI. Our estimates suggest that for each new FDI job, an additional 4.4 jobs are created locally, 2.1 of which are formal jobs.

Assessment of Socio-Economic Values of Agricultural Experience Services in School Garden Education

Background and objective This study intends to assess the socio-economic monetary value of school garden education services by converting them into market values using assessment indicators for school gardens, which are spaces for students to engage in various experiences and urban agricultural activities. Methods We identified the characteristics and current status of urban school gardens through literature review, collected opinions from a total of two rounds of expert advice, determined willingness to pay (WTP) and the importance of detailed values based on the parent survey, estimated the monetary value of each detailed value using the contingent valuation method (CVM) of WTP, and estimated three economic values. Results The total amount of educational, health, welfare, and environmental values provided by school garden education for participating students was estimated to range from a minimum of 193.1 billion won to a maximum of 978.4 billion won. The total amount of economic value provided to farm households, related industries and the economically active population was estimated to be 476.1 billion won. The job creation effect was the highest at 266.2 billion won, followed by the industrial ripple effect (157.3 billion won) and the farm household income increase effect (52.6 billion won). The evolution of school gardens is expected to reduce problems in urban areas such as environmental issues, promote community spirit through agriculture, and produce industrial ripple effects such as an increase in farm household income and job creation, raising the need to maintain multiple functions of school gardens. The total socio-economic value of school garden education seemed to range from 669.2 billion won to 1.4545 trillion won based on the operating fund, government budget, and value-added tax (VAT) of 2020. Conclusion The results of this study can be used as basic data to assess the overall value of agricultural experience services in school garden education.

Cost, emission, and macroeconomic implications of diesel displacement in the Saudi agricultural sector: Options and policy insights

The Saudi agricultural sector relies on diesel for irrigation that is provided to farmers at a price much lower than the average global price, implying significant opportunity costs. By soft-coupling power and macroeconometric models, we assessed cost and economic (macro and sectoral) implications of electrifying irrigation activities in the Saudi agricultural sector via three scenarios: electrifying each individual farm with a dedicated hybrid renewable micro-grid, electrifying the entire farm cluster with central generation, and connecting the entire cluster to the national grid. Compared with the base-case, connecting the farm cluster to the national grid was the most economic but least environmentally friendly. The renewable and central generation scenarios were costlier due to high battery costs and gas infrastructure needed, respectively. Further, the financial viability of the renewable microgrid option depends on the opportunity cost assumption. From an economic (macro and sectoral) perspective, we found that: (i) job and value-added creation effects of saved-diesel spending from export revenues is positive, but quite small implying the more diesel displaced the more benefits realized, (ii) sectoral-specific spending is more growth- and employment-enhancing than general-spending of the government suggesting taking measures to further enhance the efficiency of governmental spending as highlighted in the Fiscal Sustainability Program.

The employment effects of environmental regulation: Evidence from eleventh five-year plan in China

The balance between environmental pollution control and full employment is of practical significance in developing countries. In this article, by taking Chinese total volume control of SO2 emissions in Eleventh Five-Year Plan as a quasi-natural experiment, we are able to identify the influence of environmental regulation on the labor demand of manufacturing enterprises. The findings show that the labor demand of pollution-intensive enterprises has fallen significantly as a result of environmental regulation, which means that the higher the intensity of environmental control, the less the labor demand. This indicates that China has a long way to go to achieve a win-win of emission reduction and full employment through the total volume control of pollutants. Interestingly, environmental regulation plays a significant negative role in corporate salaries, but a significant positive impact on per capita salaries. This may imply that although environmental regulation crowds out the labor demand to a certain degree, those affected are mainly low-skilled workers. Mechanism analysis reveals that the total volume control of pollutant has both job creation and job destruction effects on enterprises. Job creation is caused by technological innovation. As for job destruction, it comes from the reduction of production scale and the substitution of capital for manpower.

The perceived effectiveness and hidden inequity of postpandemic fiscal stimuli

The world has committed trillions in fiscal expenditures to reboot the economy in the post–COVID-19 era. However, the effectiveness and the equity impacts of current fiscal stimuli are not fully understood. Using an extended adaptive regional input–output model, we assess the short-term impacts (2020 through 2022) of feasible stimuli on the global economy and the labor market. Our findings show that the stimuli pledged by 26 countries, i.e., 2.4 trillion euros in total, are effective in keeping the recession short and shallow by saving 53 million to 57 million jobs (compared to the no-stimulus scenario). However, the stimuli exacerbate income inequity at the global scale if we define “equity” as those who suffer more from the pandemic should receive more assistance. Low-skilled workers in these countries, who suffer more from the pandemic than high-skilled workers, benefit 38 to 41% less from the job-creation effects of the current fiscal stimuli. As an alternative, low-carbon stimuli can achieve a balance between effectiveness and equity at the global level. Low-carbon stimuli save 55 million to 58 million jobs and decrease income inequality by 2 to 3% globally compared to the currently pledged stimuli. Country-level situations are more complicated, as modifying the current stimuli to achieve more “greenness” brings win–win in effectiveness and equity in some countries, while in the others, more greenness and equity are at the expense of less job savings. Our findings underscore the need to consider the overlooked trade-offs between effectiveness, equity, and greenness, both globally and nationally, when designing further postpandemic fiscal stimuli.

A Study on the Export Competitiveness Reinforcement Policy of BIG3 Industry

대한민국 정부는 시스템반도체·미래자동차·바이오헬스를 BIG3 산업으로 정하였다. BIG3 산업의 수출 품목 고도화는 연구·개발 투자와 더불어 전문인력 육성이 뒷받침되어야 한다. 본 연구는 BIG3 산업의 수출경쟁력 강화를 위한 수출지원 정책과 전문인력 육성 정책 현황을 파악하고 해외 사례 분석, 산업별 전문가 자문을 통해 수출경쟁력 강화 전략 시사점을 제시하였다. 수출지원 정책에서 일자리 창출 효과를 반영하는 현상과 BIG3 산업 기업에 대해 정부 부처 합동으로 수출지원을 하는 것을 확인할 수 있다. BIG3 산업 수출경쟁력 강화를 위해 급한 부분은 전문인력 육성이다. 이를 위한 정부 정책이 강화되고 있으며 선진국들도 BIG3 산업에 전략적으로 인재 양성과 투자를 하고 있다. 연구의 시사점은 다음과 같다. BIG3 산업은 기존산업의 고도화에 그치는 것이 아니라 특성화된 부분에 맞춘 인력양성을 해야 한다. 기업 등 민간 주체와 함께 인력양성 정책을 해나가야 한다. 그리고 성공적인 수출 성과를 위해 BIG3 분야 무역 전문인력 양성도 필요하다.The Korean government has designated system semiconductors, future automobiles, and bio-health as BIG3 industries. The advancement of export items in the BIG3 industry must be supported by investment in R&D and training of professional manpower. This study identified the export support policy and professional manpower nurturing policy to strengthen the export competitiveness of the BIG3 industry, and presented implications for export competitiveness enhancement strategies through overseas case analysis and expert advice by industry. It can be seen that the export support policy reflects the job creation effect and that government departments jointly provide export support for BIG3 industrial companies. The urgent part to strengthen the export competitiveness of the BIG3 industry is to foster professional manpower. For this purpose, government policies are being strengthened, and advanced countries are also strategically nurturing talent and investing in the BIG3 industry. The implications of the study are as follows. The BIG3 industry should not stop at the advancement of existing industries, but should nurture manpower tailored to specialized areas. It is necessary to implement a manpower nurturing policy together with private entities such as companies. And for successful export performance, it is also necessary to train trade experts in the BIG3 field.

중소기업의 성장성 및 수익성과 정부보조금의 고용창출효과

[연구목적] 본 연구는 중소기업 일자리 창출을 위한 정부보조금 지원이 고용창출효과가 있는지 성장성과 수익성 등 기업의 특성을 고려하여 분석하여, 향후 정부의 보조금 지원 정책에 대한 방향성과 시사점을 제시하고자 하였다. [연구방법] 본 연구에서는 Cretop에 수록된 2011～2016년 667개 중소기업을 분석하였다. 표본 기업을 대상으로 정부보조금이 기업의 지원받은 당해 연도 및 차기 연도 고용창출에 영향을 미치고 있는지, 그리고 성장성과 수익성 등 기업 특성에 따라 정부보조금의 고용창출 효과가 차이가 있는지 분석하였다. [연구결과] 중소기업에 대한 정부보조금의 지원이 수혜 받은 지원연도(t기)의 고용 증가율을 높이는 것으로 나타났다. 또한, 기업의 수익성과 성장성을 대변하는 지표인 총자산이익률과 매출액증가율이 클수록 근로자를 더 채용하는 것으로 나타났다. 지원받은 중소기업들은 지원 차기 연도에도 고용을 유지하고 있었는데, 지원연도에 성장성이 높은 기업은 차기 연도에도 고용을 더 증가시키고 있었다. [정책적 시사점] 본 연구는 정부의 보조금 지원이 기업의 성장성과 수익성 등 재무적 특성에 따라 고용 창출에 미치는 영향이 달라짐을 보여줌으로써, 일자리 창출을 위한 정부 보조금 지원 정책의 방향성 제시와 보조금 지원 후에도 지속적인 일자리 창출로 이어질 수 있는 지원사업 관리가 필요함을 시사하고 있다.

Economics of co-firing rice straw in coal power plants in Vietnam

As governments forced electricity producers to use more renewable energy sources, over a hundred thermal power plants in high-income countries turned to biomass as a partial or complete replacement for coal. Is the co-firing technology appropriate for Vietnam? To assess the technology we build an integrated model simulating the economics, environmental and social implications of blending 5% of rice straw in two existing coal power plants in Vietnam. The business value of co-firing is positive –straw is cheaper than coal– but not large enough to motivate the stakeholders. The external social benefit of co-firing –reduced air-borne pollution– are several times larger than the business value. Within that external benefit, the social value of avoided PM2.5 and NOx emissions dominates the social value of avoided CO2 emissions. The net job creation effect is positive: collecting straw creates more employment than using less coal destroys. This is the first technology assessment of co-firing biomass in coal power plants in Vietnam and one of the first for a subtropical middle-income country. The study only considers rice straw, and it does not address the role of government nor the biomass market functioning. The price of coal is the primary determinant of co-firing business value. There is an empirical economic justification for a public intervention to promote co-firing biomass in Vietnam, mainly as a way to reduce open-field straw burning. Local air quality goals, rather than greenhouse gas reduction policy, can justify such regulations.